Question
McTavish Transportation loads Intermodal containers onto railcars. Each railcar can accommodate a maximum size load of 60 feet long x 8 feet wide x 8
McTavish Transportation loads Intermodal containers onto railcars. Each railcar can accommodate a maximum size load of 60 feet long x 8 feet wide x 8 feet high. McTavish only loads three sized of intermodal containers:
Short | Standard | Long | |
Container size (L x W x H) (in feet) | 10 x 8 x 8 | 20 x 8 x 8 | 55 x 8 x 8 |
Price charged to customer: | $ 520 | $ 900 | $ 2,100 |
Variable cost per container | 280 | 300 | 400 |
McTavish currently has space available on 10,000 railcars. No additional railcars are available.
Fixed costs related to loading and the 10,000 railcars is $8,000,000
Various customers have the following containers to be loaded. Total demand is as follows:
Short: 36,000 containers
Standard: 18,000 containers
Long: 3,000 containers
McTavish can pick and choose which containers are loaded and which customers to accept.
Required:
- How many rail cars would be required to satisfy all of the current demand?
- How many of each container type should McTavish load?
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